The 10% Lumpsum Provision Scheme is a vital initiative by the Indian Ministry of Urban Development. It is specifically designed to allocate funds for development projects in the North Eastern Region, including Sikkim. Operational since the financial year 2001-02, this scheme ensures that a dedicated portion of the Ministry’s annual budget is used to address the unique development needs of this region.
Understanding the Scheme
The scheme operates under the guidelines of the Non-Lapsable Central Pool of Resources (NLCPR), ensuring that allocated funds are exclusively used for their designated projects. A key feature is that 10% of the Ministry’s Annual Plan Budget is earmarked for projects in these states. This dedication demonstrates the government’s commitment to the region. Funds released from this pool are strictly tied to specific projects, ensuring that no diversion is permitted.
Funding and Implementation
The funding pattern varies depending on which entity is carrying out the projects:
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Central Agencies (NBCC, HUDCO etc.): These agencies receive 100% of the project’s estimated cost from the Ministry, plus 10% agency charges for execution.
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State Governments: The Ministry provides up to 90% of the estimated cost, while the respective state governments bear the remaining 10%.
Impact and Outreach
In the last 13 years, the Ministry has sanctioned 313 projects with a combined estimated cost of approximately Rs. 3,012 crore. Of this, the Central Government’s share was about Rs. 2,838 crore and Rs. 2,110 crore has been released.
These projects have been spread across eight states:
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78 projects in Arunachal Pradesh
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63 projects in Nagaland
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47 projects in Assam
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34 projects in Sikkim
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23 projects in Manipur
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24 projects in Mizoram
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22 projects in Tripura
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22 projects in Meghalaya
Out of these, 181 projects have been completed as of date. In the 2016-17 financial year, the budget allocation was Rs. 100 crore, fully released up to July 31, 2016.
Approval Processes
As per the Finance Ministry’s guidelines, the authority to approve projects costing up to Rs. 100 crore lies with the Secretary (UD) in consultation with the Financial Advisor. For projects between Rs. 100 and 500 crore, the approval is done through the Departmental Standing Finance Committee, which consists of:
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Secretary (UD), Ministry of Urban Development (Chairman)
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Financial Advisor, Ministry of Urban Development (Member)
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Joint Secretary (UD), Ministry of Urban Development (Member)
Representatives from the Planning Commission, Department of Expenditure, and the Ministry of DoNER are also involved in SFC meetings, as needed. For projects costing over Rs. 500 crore, the Expenditure Finance Committee is the appraisal forum.
Conclusion
The 10% Lumpsum Provision Scheme demonstrates the Indian government’s commitment to fostering development in the North Eastern states, including Sikkim. By ensuring dedicated funding and providing technical support through various agencies, the scheme plays a critical role in implementing essential projects that address the diverse needs of the region. This focused approach helps achieve balanced development across all parts of India.